March 3, 2020 / 2:09 PM / a month ago

US STOCKS-Wall Street set for lower open as G7 statement underwhelms

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* G7 vows “all appropriate tools”, but no specifics

* Thermo Fisher jumps after $11.6 bln bid for German firm

* Advanced Micro Devices rises after Piper Sandler upgrade

* Futures up: Dow 0.39%, S&P 0.24%, Nasdaq 0.57% (Adds comments, details; updates prices)

By Medha Singh

March 3 (Reuters) - The Dow Jones Industrials index looked set to drop more than 100 points at the open on Tuesday after G7 heads stopped short of outlining measures to cushion the economic blow of the coronavirus epidemic, while assuring policy support.

Wall Street’s main indexes had closed more than 4% higher on Monday after their worst week since 2008, as central banks in Japan and the European Union joined the Federal Reserve in signaling further monetary easing.

But a statement from the meeting of G7 finance ministers and central bank governors on Tuesday only said they stood “ready to take actions, including fiscal measures where appropriate”.

“The G7 is essentially trying to reassure markets but it doesn’t have the ability to really impact interest rates directly,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

As of Monday, traders had fully priced in a 50 basis point reduction in borrowing costs from the Fed this month, according to CME Group’s FedWatch tool, compared with zero just a week ago, as the virus spreads faster outside China.

“Frankly, futures are overestimating not just the probability of a cut, but the magnitude of the cut as well,” Frederick said.

At 8:51 a.m. ET, Dow e-minis were up 102 points, or 0.39%. S&P 500 e-minis were up 7.5 points, or 0.24% and Nasdaq 100 e-minis were up 50.25 points, or 0.57%.

Although futures were trading higher just before the bell, the implied open for Wall Street’s main stock indexes was lower.

Healthcare equipment maker Thermo Fisher Scientific, rose 5% in premarket trading after it launched a $11.6 billion bid for German genetic testing company Qiagen.

Department store retailer Kohl’s Corp gained 4.1% after it beat quarterly profit estimates as partnerships with online retail giant Amazon.com and others brought in more shoppers to its stores.

Chipmaker Advanced Micro Devices rose 2.4% after Piper Sandler raised the stock to “overweight” on expectations the company would continue to gain market share from peer Intel over the next several years.

Electric-car maker Tesla rose 6.7% after brokerage JMP Securities upgraded the stock to “market perform”.

Focus will also be on U.S. politics as 14 states hold primaries on Super Tuesday to choose the Democratic candidate to challenge Republican President Donald Trump in the Nov. 3 elections. (Reporting by Medha Singh and Sanjana Shivdas in Bengaluru; Editing by Arun Koyyur)

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